LTCG tax kept below STT to encourage long-term investors: FM

Finance Minister Arun Jaitley said his government didn't want to tax retrospectively, therefore, all gains (from stocks that held over one year) from stock market up to  January 31, 2018, will be grandfathered.

Long-term capital gains tax on gains arising from the transfer of listed equity shares exceeding Rs 1 Lakh was kept at 10%, without allowing any indexation benefit. 

"We kept the capital gaintax below the securities Transaction tax, which is 15%, Jaitely said at a post-Budget press conference.

Tax expert TP Oswal said the standard deduction will not be beneficial for the middle-class. The finance minister should have given at least Indexation benefit. Indexation helps investors in long-term debt funds to save taxes. 

"Common man will not get anything. This is an eyewash."

Oswal said long-term capital gain tax will discourage long-term investors as the difference between short-term capital gain, which is at 15%, and long-term ones is very thin.